`SARS won't affect bond roadshow'

`SARS won't affect bond roadshow'

Dow Jones, Jakarta

Bank Mandiri, Indonesia's largest lender, said Monday that it will go ahead with its plan to visit Singapore, Hong Kong and London to market its US$250 million bond, despite the recent outbreak of a deadly flu-like illness in Asia.

The bank hopes to go ahead with the overseas roadshow next week, but that's assuming the central bank approves the bond issuance plan by then, Chief Executive Officer Edwin Neloe told Dow Jones Newswires.

"The SARS (severe acute respiratory syndrome) won't affect our plan," he said.

A bank official said Friday that the bank would likely market the bond in Singapore only as Hong Kong has been one of the areas hit hardest by SARS.

Bank Mandiri launched the five-year bond in Jakarta earlier Monday.

Analysts said the bank will likely assign a fixed rate of 7 percent on the bond, with the price expected to be decided some time next week.

If the bond is well received, Bank Mandiri may issue a $150 million debt later this year to boost its lending, analysts added.

Market observers expect Bank Mandiri's bond to attract mainly Asian investors, given that the local bid remains strong and the region's financial system is still flush with liquidity.

But a person close to the deal said the bank is also targeting European investors.